Home » News » Finance » Audit of goods released under DTRE ordered

Audit of goods released under DTRE ordered

ISLAMABAD (July 18 2005): The Central Board of Revenue (CBR) has ordered audit of imported consignments released under the 'Temporary Importation Scheme' and Duty and Tax Remission for Export (DTRE) rules to unearth cases where wrong assessments were made due to mis-declaration.

This is for the first time that CBR has decided to simultaneously conduct audit of consignments cleared in the past under the DTRE and SRO.410(I)/2001 on the presumption of detecting evasion of huge amount of duties and taxes.

The collectors have been empowered to take legal action against the importers found involved in evasion of duties and taxes.

Official sources told Business Recorder on Sunday that a number of associations have pointed out that goods imported under the temporary importation schemes particularly SRO.410 and DTRE are allowed release at the declared value which is generally under-stated and mis-declared. The importer later on request for payment of duties and taxes at the declared-cum-assessed value and evade huge amount of duties and taxes.

Officials stated that the assessment of 'temporary imported goods' at the understated values is a clear cut violation of the provisions of Section 25, Section 32 and 32A of the Customs Act, 1969. It has been decided that all goods even those imported under the temporary importation schemes or under claims of any partial or full exemption from custom duty shall be assessed at their true transaction value as the other goods are assessed for levy/collection of customs duty and other taxes.

The CBR has further ordered that all the releases of temporary imports in the past should be audited and subsequently scrutinised and legal proceeding be initiated to rectify the wrong assessments in the past on top priority basis, the Board added.

Leave a Reply